The FTSE 100 soared on Monday morning, rising 1.64% to 6,100.62 in early trading amid talk of a takeover bid for BT (BT.A).
BT was the biggest riser in early trading, with its shares jumping 8% to 110p, after reports over the weekend suggested the telecom giant could be set for a takeover bid from an industry rival or buyout firm having seen its shares collapse in the past year.
However, Sky News reports that BT has not yet received a formal approach from any potential suitor, with its board asking bankers at Goldman Sachs to update the company’s bid defence strategy.
BT shares have dropped markedly since it suspended its dividend, with the company struggling from stiffer competition from rivals as well as its commitment to fund a £12 billion investment programme to roll out superfast fibre broadband to 20 million premises across the country by the end of the decade.
ASTRAZENECA RISES AS TRUMP MULLS FAST-TRACKING VACCINE
In other company news, pharmaceutical giant AstraZeneca (AZN) rose 2.1% to £86.13 after the Financial Times reported that the Trump administration was considering fast-tracking approval of its Covid-19 vaccine being developed with Oxford University before the US presidential election in early November.
According to the FT report, one option being explored to speed up the availability of a vaccine would involve the US Food and Drug Administration awarding emergency use authorisation in October to the vaccine, based on the results from a relatively small UK study if it is successful.
Pub chain JD Wetherspoon (JDW) added 1.5% to 988.5p, even as it said it expected to make a loss in the year ended July, and reported a fall in bar and food sales owing to competition from supermarkets.
Though it said sales have gradually improved with a rapid acceleration recently, largely due to subsidised food, coffee and soft drinks in the early part of the week, the company said.
BUNZL REINSTATES DIVIDEND
Distribution and services group Bunzl (BNZL) climbed 4% to £25.00, having reinstated its dividend after first-half profit rose by more than a fifth.
Bunzl reinstated its 2019 final dividend of 35.8p and raises its 2020 interim dividend by 1.9% to 15.8p, which comes after its first half performance was better than expected.
For the six months ended 30 June 2020, pre-tax profit rose 22% to £245.4 million on-year as revenue grew 6.7% to £4.8 billion.
Revenue grew 18.9% in Continental Europe driven by ‘demand for Covid-19 related products,’ the company said. In North America, which accounts for the bulk of growth, underlying revenue fell 3.9%.
OTHER COMPANY NEWS
Frasers (FRAS), formerly Sports Direct International, advanced 1.2% to 350.4p on announcing that it had acquired gym assets from the administrators of Dave Whelan Sports for up to £43.9 million.
Education and publishing company Pearson (PSON) edged 0.1% higher to 579p as it announced the appointment of former Disney executive Andy Bird as its new chief executive, to replace John Fallon in October.
Mining company Rio Tinto (RIO) rose 2.2% to £47.88 after it said three executives, including chief executive Jean-Sebastien Jacques, will have their bonuses slashed following the company’s decision to blast two ancient Australian cave sites.
